The company: Kellstrom Industries Inc. in Sunrise, Florida, is a
rapidly growing independent dealer of refurbished jet engines and
parts.

Markets: As a fast-growing player in the $3.75 billion
aircraft engine parts industry, Kellstrom provides its products to
26 major airlines worldwide. The current trend of airlines
outsourcing is providing independents such as Kellstrom with growth
opportunities.

The company is one of the few resellers of its type to have
received ISO 9000 quality certification, an important factor as
safety and quality become larger purchasing determinants than price
in the wake of recent airline safety problems. The Federal Aviation
Administration requires airlines to use only accredited suppliers,
and partly due to the ISO 9000 certification, Kellstrom has
obtained approved supplier status from more than 50 customers in
six countries.

The Sizzle: Kellstrom's top seven officers have a
combined 135 years of experience in the aircraft industry. Their
depth of experience and worldwide industry contacts are a driving
factor behind their success. Earlier this year, when Kellstrom
bought out its former rival, the $22 million International Aircraft
Support Inc., it acquired complementary product lines that today
power more than
65 percent of the world's aircraft.

Reduced inventories at major airlines in response to financial
controls, shrinking lists of approved suppliers, worldwide
deregulation and projected growth in numbers of passengers are all
trends that should provide additional opportunities for
Kellstrom.

The Risks: Revenue slowdown could occur if the company is
unable to continue making financially prudent acquisitions.
However, since the industry is highly fragmented, with many small
suppliers that may be acquired, the risk is not significant over
the near term.

Historical Financial Performance: Since 1994, revenues
have increased from $8.2 million to $24.9 million last year. During
the first half of 1996, European sales nearly quintupled. The
explosive growth in overall sales and earnings is largely
attributable to increased working capital and available credit
sources.

Projected Financial Performance: With the airline
industry likely to become even more selective, Kellstrom should be
able to maintain above-normal growth for the foreseeable future.
Present financing should be sufficient for revenue growth to $150
million within the next two years. Projections in the chart (left)
are based on current operations and the company's potential to
use capital in ways that will boost earnings per share, such as
through prudent acquisitions. Given the company's rapid growth
and industry position, the price-earnings ratio should reach 18 to
20 in the next two years.